Saturday, 30 August 2014
Last updated 23 hours ago
Aug 9 2013 | 10:54am ET
When the Securities and Exchange Commission lost a market-timing lawsuit before the U.S. Supreme Court earlier this year, it also lost millions in fines in another market-timing case.
Citing the high court's February ruling that fraud lawsuits must be filed within five years of the alleged crime, the U.S. Second Circuit Court of Appeals slashed the penalty levied against hedge fund Pentagon Capital Management and its founder. The court ordered the two to pay a combined $38.4 million in disgorgement, but said that the civil fine against the two must be cut. The trial-court judge had ordered Pentagon and Lewis Chester to pay nearly $90 million in disgorgement, civil penalties and prejudgment interest.
The issue? The SEC accused Pentagon of defrauding mutual funds with a late-trading scheme from June 1999 through September 2003—but didn't sue until April 2008.
The court did uphold the lower-court finding against Pentagon and Chester. Pentagon, which Chester shuttered just before the SEC sued, and its founder had argued that they did not seek to deceive anyone with their practices, and could not be held primarily liable for securities fraud as investment advisor. But Chief Circuit Judge John Walker wrote that late-trading is inherently deceitful.
Aug 25 2014 | 11:21am ET
As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…
Commodities/Futures magazine launched at the precipice of a revolution in the futures industry—really a revolution in the idea of risk management—that would move it from a small niche industry to ...